At www.ValuEngine.com we show that the Consumer Discretionary sector is 0.6% overvalued with the Schools industry 25.8% undervalued. All six stocks have complete ValuEngine data and enough data to have some value levels, risky levels and pivots.
Ambow Education Holding Ltd. (AMBO) – has below $10 since the week of February 18.
Bridgepoint Education, Inc. (BPI) – has been below $10 since just since last week’s close.
CECO Environmental Corp. (CECE) – has been below $10 since the week of March 10, 2012.
Corinthian Colleges Inc. (COCO) – has been below $10 since the week of August 6, 2010.
National American University Holdings, Inc. (NAUH) – has been below $10 since the week of August 19, 2011.
TAL Education Group (XRS) – has been below $10 since the week of July 27, 2012.
Reading the Table
OV / UN Valued – The stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine. There are no overvalued stocks in this table. The most undervalued stock is COCO by 72.0%.
VE Rating – A “1-Engine” rating is a Strong Sell, a “2-Engine” rating is a Sell, a “3-Engine” rating is a Hold, a “4-Engine” rating is a Buy and a “5-Engine” rating is a Strong Buy. We have three sell rated stocks and three hold rated stocks in the table.
Last 12-Month Return (%) – Stocks with a Red number declined by that percentage over the last twelve months. Stocks with a Black number increased by that percentage. The best performer over the past twelve months is COCO with a gain of 30.5%. All others were lower with CECE the worst performer with a loss of 80.9%.
Forecast 1-Year Return – Stocks with a Red number are projected to decline by that percentage over the next twelve months. Stocks with a Black number in the Table are projected to move higher by that percentage over the next twelve months. There are no projected big winners or losers among these six stocks over the next twelve months.
P/E Ratios – BPI and COCO have single-digit P/E ratios with NAUH and XRS with elevated P/E ratios.
Value Level: is the price at which to enter a GTC Limit Order to buy on weakness. The letters mean; W-Weekly, M-Monthly, Q-Quarterly, S-Semiannual and A- Annual.
Pivot: A level between a value level and risky level that should be a magnet during the time frame noted.
Risky Level: is the price at which to enter a GTC Limit Order to sell on strength.
Where to Buy and Where to Sell
A “Value Level” is a price at which buyers should add to positions on market price weakness. A “Risky Level” is a price at which sellers should reduce holdings on market price gains. A “Pivot” is a support or resistance (Value Level or Risky Level) that was violated in its time horizon, acting as a magnet during the remainder of that time horizon. These levels are calculated in weekly (W), monthly (M), quarterly (Q), semiannual (S) and annual (A) time horizons, based on the past nine closes in each time horizon. My theory is that the closes over a nine-year period are the summation of all bullish and bearish events for that market or specific stock. These levels are the most important element of my Buy and Trade Strategy.
Buy and Trade Guidelines
Investors should consider entering good until cancelled (GTC) orders to buy weakness to a value level, or to sell strength to a risky level.